China’s state media reported Sunday that it has opened an investigation into Apple iPhone manufacturer Foxconn regarding tax and land usage.
The Global Times, citing unnamed sources, reported that tax authorities had inspected Foxconn sites in Guangdong, Jiangsu, and natural resources officials in Henan, Hubei.
Foxconn stated that it would cooperate with the investigation. Foxconn said in a press release that complying with laws is a fundamental principle of the group. “We will actively cooperate with the relevant authorities.”
Global Times quoted an expert as saying that “Taiwanese-funded enterprises include Foxconn”. . . Should also assume the corresponding social responsibility and play a role positive in promoting a peaceful development of cross strait relations”.
Terry Gou, the founder of Foxconn, is running in Taiwan’s January presidential elections as an independent candidate. This contest will have a major impact on Taiwan’s relations with China and tensions along the Taiwan Strait.
Gou, the man who gave Foxconn’s management to the successor CEO four years ago, announced his presidential bid in early September. He resigned from the board but retained a 12.5% stake in the firm.
Beijing has targeted local subsidiaries owned by Taiwanese firms in the past with regulatory investigations and political pressure during sensitive or tense moments. Chinese officials often urge Taiwanese firms to promote “peaceful developments” between the two countries.
China claims Taiwan to be part of its territory, and reserves the right to forcefully take the island if Taipei refuses unification. The People’s Liberation Army has been increasing its efforts to monitor the airspace and water near Taiwan.
According to Formosa, a leading Taiwanese pollster, Gou is trailing all three other presidential candidates with only a 7 percent support rating.
The founder insists despite his decades-long business dealings in China that has made Foxconn China’s largest employer and exporter he does not do China’s bidding.
Gou stated this at his announcement of his presidential bid on August 28, “If the Chinese Communist Party regime were to say, “If you don’t heed me, I will confiscate your Foxconn assets, I would say, ‘Yes, please do it!” “I will not obey their orders.” “I won’t be threatened.”
Apple is also trying navigate an increasingly complicated relationship with China, at a moment of historical tensions between Beijing & Washington. Apple’s chief executive Tim Cook visited China last week and met members of Xi Jinping’s leadership team. This included Vice-Premier Ding Xuexiang, China’s Commerce and Information Technology Ministers, and Vice Premier Ding Xuexiang.
In recent months, Chinese government departments and state owned enterprises have banned or discouraged their employees from using Apple products. Beijing issued a warning in September about “security incidents” involving iPhones.
The investigation of the Apple supplier highlights the uncertainty that foreign companies in China are experiencing after Beijing imposed stricter controls on consultancies and due diligence firms.
reported Chinese Police raided GroupM’s Shanghai offices on Friday.